# Mysten Labs Unveils Walrus Protocol, A New Entrant in Decentralized Storage

Mysten Labs has introduced the Walrus Protocol, aiming to disrupt the decentralized storage market following the successful launch of the Sui Network and DeepBook Protocol. Despite an already crowded market, Walrus is attracting significant attention for its efficient operation and unique features, such as DA implementation and data programmability. These capabilities extend beyond mere data storage, enabling interactions with various on-chain applications and offering advantages not seen in existing models. Korean research firm Four Pillars has published a comprehensive article on Sui Network and Walrus Network. Below is a summary of their findings.

# Key Differentiators of Walrus Protocol

### Cost Efficiency in Storage

Walrus addresses the limitations of existing models like Arweave and Filecoin by significantly reducing data replication costs and minimizing data loss risk. Unlike Arweave, where every node replicates all data resulting in high costs, and Filecoin, where costs increase with the number of storage nodes, Walrus employs Red-Stuff Encoding. This method transmits data only once, with each node storing a part of the data, which lessens the burden as more nodes are added. This innovative approach reduces storage costs by four to five times compared to traditional methods, solving the costly replication issue seen with Arweave, and enhances overall network efficiency.

### Programmability

Traditional storage systems have been limited to data storage. In contrast, Walrus, integrated with the Sui Network, offers a programmable environment where stored data can directly interact with smart contracts. For instance, during NFT minting, image files stored in Walrus can be directly linked to data objects within the Sui Network, ensuring on-chain integrity of NFTs. Smart contracts also facilitate data ownership transfers and automated control, offering dynamic capabilities not possible with Filecoin or Arweave.

### Data Access and Deletion

Existing decentralized storage protocols typically allow any uploaded data to be accessible by anyone and permanent, which can be problematic for institutions storing sensitive information. Walrus addresses this by offering data deletion and modification functionalities upon user request. Although there are concerns about conflict with blockchain immutability, Walrus only deletes data blobs while preserving transaction records, maintaining blockchain integrity.

# Relationship Between Walrus and Sui Network

Walrus is not merely an independent storage solution but complements and extends the Sui Network’s storage capabilities. Sui Network’s on-chain storage fund system allows users partial refunds upon data deletion. However, storing large blob data on-chain presented challenges. Walrus alleviates this by storing such data off-chain and managing metadata as objects within Sui Network, enhancing programmability while reducing actual data storage burden.

Additionally, storing data in Walrus locks a certain amount of Sui tokens, which, even with partial refunds, leads to a deflationary effect by reducing token circulation. This increase in Walrus usage links to Sui token’s deflationary mechanism, enhancing asset value within the Sui Network.

# Long-Term Vision of Mysten Labs

Mysten Labs is building a decentralized infrastructure encompassing execution, storage, consensus, and communication within the Web3 space. With applications and UI solutions such as SCION, zkLogin, Stashed, SEAL, and KELP, Mysten Labs aims to transition Web2 users into a fully decentralized ecosystem. The Walrus Protocol is a crucial component in augmenting the Sui Network’s storage layer, providing not only cost efficiency and data programmability but also bridging the gap between on-chain and off-chain applications.

Walrus also extends beyond the Sui ecosystem, applicable to third-party applications and other DA (Data Availability) layers, generating external demand for Sui tokens. When storing data in Walrus, the lock-up of Sui tokens gradually decreases token supply and increases value. In conclusion, Walrus is set to drive the expansion of the Sui Network and position itself as a leading storage protocol, surpassing existing models like Filecoin. Mysten Labs’ efforts to build a comprehensive Web3 infrastructure mark a significant step toward realizing their long-term vision.

# Four Pillars Research

Founded in May 2023, Four Pillars is a South Korean blockchain research firm specializing in blockchain infrastructure, regulation, and applications. In just 11 months, Four Pillars has published over 150 research reports in both Korean and English, including reports on global blockchain projects like Solana and Sui, leading the charge in popularizing the Web3 ecosystem.

For the full research article, click [here].